WELCOME!

2019 UNITED ROTORCRAFT

SUPPLIER SUMMIT 03/26/19

Partners On The Call:

Accu-Precision Advanced Manufacturing Aero Dynamix AG Machining Avionic Instruments BAE Systems BFN Industries Centennial Machine Dallas Avionics Electro Enterprises Essex Industries Excalibur Manufacturing Finishing Professionals Fischer Seats Goodrich Lighting

Goodrich Hoist & Winch Kawak Aviation Technologies Martin Baker America Maxon Motors Motor Magnetics Inc. NDE Services Nook Olympic Metals Pioneer Metal Finishing Ragsdale Industries RB Machine Specialty Plating Tag Team Manufacturing Thayer Manufacturing United Plating

Mike Slattery – President, United Rotorcraft

Bill Salus – Sr. Director of Operations, United Rotorcraft

Christen Duncan – Quality Systems Director, United Rotorcraft

Michael Knight – Quality Assurance Specialist, United Rotorcraft

Bryan Freshment – Supply Chain Supervisor, United Rotorcraft

United Rotorcraft Staff On The Call:

Why Are You Here?

To better understand United Rotorcraft and its mission

To gain knowledge about the types of customers we support

To get an idea of how your products fit into ours

To see how we manage our supplier base

To learn what we need from YOU, our suppliers

Agenda

Corporate Presentation – United Rotorcraft

Overview – Supplier Quality Control

Overview – Supply Chain Management

Discussion/Questions

7301 S. Peoria St. Englewood, Colorado 80112 (303) 792-7400 www.unitedrotorcraft.com

United Rotorcraft Corporate Presentation

Air Methods HEMS Operations

United Rotorcraft Locations

Huntsville, Alabama Decatur, Texas

Englewood, Colorado

Englewood, Colorado United Rotorcraft Corporate Commercial Operations Engineering Manufacturing ODA

Englewood, Colorado Government Operations

Decatur, Texas Commercial Completions Aircraft Paint Facility Maintenance and Overhaul (MRO)

Huntsville, Alabama Government Program Office

United Rotorcraft provides complete Life Cycle Support for systems and equipment

Airborne Military Medical Evacuation (MEDEVAC)

Airborne Law Enforcement (ALE)

Special Mission

Tourism Firefighting Corporate VIP

Commercial Emergency Medical Services (EMS)

United Rotorcraft provides products and services to meet a wide range of mission requirements for commercial and military customers

Market Segments

Armored Military Medical Evacuation (MEDEVAC)

Product Line Applications Airbus Leonardo Bell Helicopters

MD Helicopters

Sikorsky

Major Programs

S-70 Firehawk LACFD, San Diego Fire, Ventura Co.

CAL FIRE

DEVELOPMENT

DEVELOPMENT

Bell 505 EMS

HH-60A/L/M Black Hawk MEDEVAC

UH-60A/L/M Black Hawk IMMSS/UHMMSS

Stryker Medical Evacuation

Vehicle (MEV)

BAE AMPV Medical Evacuation Vehicle (MEV) Medical Treatment Vehicle (MTV)

PRODUCTION

SUSTAINMENT/FMS DEVELOPMENT (EMD)

PRODUCTION

S-70 FIREHAWK®

LA County Fire Department FIREHAWK®

Personnel Transport 12-14 Firefighters with Equipment

Medical Evacuation Patient Litter Systems Onboard medical systems

Search and Rescue (SAR) External Rescue Hoist

Cargo Transport Internal/Cargo Hook

One aircraft capable of performing multiple missions by quickly changing between configurations to maximize the utility of the airframe.

Firefighting 1,000 gallon water tank

Multi-Mission Capability

The Firehawk is equipped with a 1,000 gal external water tank

Equipped with a retractable snorkel the

Firehawk can hover over almost any water source

and pump 1,000 gal of water in 45 seconds

Firefighting

Personnel Transport

The Firehawk has convertible crew seating that allows of

transport of up to 12 firefighters

Search and Rescue

Medical Evacuation

The Firehawk is equipped with an external rescue hoist

The Firehawk is equipped with medical system on board and can transport patients.

Bell 505 EMS

The 505 from Bell Helicopter is a new light single which replaces the legacy single engine B206 Jet Ranger. Bell has received over 380 orders to date.

HH-60M MEDEVAC Program

United Rotorcraft designed the medical interior for the HH-60 helicopter starting in 1991 to address the air medical evacuation deficiencies identified by the U.S. Army during Operation Desert Shield and Desert Storm.

Since 1998 UR has produced the medical interior for the HH-60A, L and M.

The current production version is the HH-60M.

HH-60M MEDEVAC Program

HH-60L MEDEVAC Helicopter Transporting Patients in Operation Iraqi Freedom

UH-60 IMMSS/UHMMSS Program

In 2006 United Rotorcraft designed the IMMSS to provide upgraded medical evacuation capability for the UH-60 helicopter.

To date UR has manufactured over 200 IMMSS systems for the U.S. Army and 17 UHMMSS kits for international military customers.

Stryker Medical Evacuation Vehicle (MEV)

United Rotorcraft developed the Patient Litter System for the Stryker armored vehicle in 2001. Over 400 units were produced. Currently the program is in sustainment for the U.S. Army and foreign military sale (FMS).

Stryker Medical Evacuation Vehicle (MEV) Double V Hull Upgrade

In response to poor performance against IEDs, the Army began manufacturing and retrofitting Stryker vehicles with a more survivable double v-hull designed underside. During these modifications GDLS incorporates additional upgrades to the United Rotorcraft/Air Methods medical interior components. UR has received an IDIQ (Indefinite Duration/Indefinite Quantity) contract to provide these products 2018-2022.

BAE AMPV Medical Evacuation Vehicle (MEV) Medical Treatment Vehicle (MTV)

MEV – Replaces the M113 AMEV. Provides medical evacuation from the point of injury to an aid station and medical resupply replenishment. Transport flexible numbers of crew, ambulatory patients, and/or litter patients.

The primary product UR provides for the MEV is the Litter Lift System (LLS). This system assists in loading, positioning and securing patients during transport.

UR also manufacturers a Fluid Containment Floor to protect the vehicle from corrosive fluids.

MTV – Replaces the M577A3 Medical Vehicle. Serves as the forward aid station, main aid station, and the battalion aid station.

The primary product UR provides for the MTV is the Medical Treatment Table (MTT). This provides a stable, adjustable platform to secure a patient for transport and provide a high level of medical care.

SUPPLIER QUALITY CONTROL

AGENDA: Supplier Performance Monitoring Process Overview and Plans for 2019 The following section will include a review of the

following topics regarding suppliers: Compliance Performance Communication Recognition

Compliance Compliance Requirements for United Rotorcraft

FAA-MIDO (14CFR Part 21) = Manufacturing FAA-FSDO (14 CFR Part 145) = Repair Station DFARs/Government Contracts ISO9001/AS9100 Customer Contracts

Process Requirements Vendor Self Assessment AS-020 – Supplier Quality Requirements Terms and Conditions Reps and Certs Conflict Minerals OPSEC Training Small Business Certification NDAs

Performance Supplier Performance Metrics

On time Delivery (OTD) – 40% Quality – 40% Overall Risk – 10% Customer Service – 10%

Monitoring and Communication Tools Vendor Self Audits (VSA) Scorecards Audits Supplier Concern Resolution Requests (SCRR) Supplier Corrective Action Requests (SCAR)

Overall Supplier Performance - 2018

2018 Overall Supplier Results On time Delivery (OTD) – 79% (target = 90%) Quality (Yield) – 99% (target = 90%) Overall Risk – 8/10 Points (target = 10) Customers Service – 8/10 Points (target = 10)

Top Supplier Issues in 2018 On time delivery (late orders) Missing/incorrect documentation SCRR content (edits)

71.64% 73.67%

80.33% 81.56%

90.58%

79.63% 77.25% 75.64%

84.37% 81.49%

77.89% 72.33%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Supplier On Time Delivery - 2018

Goal

Performance Communication Scorecard

On Time Delivery = Based on negotiated promise date Quality = Total first pass yield Overall Risk

Single/Sole Source Obsolescence Supplier Stability Quality = Yield, SCRR, SCARs/Audit findings OTD Customer Service

Customer Service Response Time Quote Lead Times Cost Missing Documentation

Supplier Scorecard Example

Total Vendor Score

Supplier Recognition United Rotorcraft Top Supplier Award

Each “United Rotorcraft Top Supplier” will receive a wall plaque to proudly display

Conditions/Requirements Total Vendor Score must be at or above 95%

Advantages to being a Top United Rotorcraft Supplier

Opportunities for LTAs Recognition on United Rotorcraft website Fewer onsite audits Participation in Supplier Inspection Delegation Program Potential future business opportunities

2018 Top Suppliers:

Hoist & Winch Division Lighting Systems

SUPPLY CHAIN MANAGEMENT

Supply Chain Org Chart

Bill Salus Sr. Director of

Operations

Lynne Peterson Purchasing

Debbie Rowe Purchasing

David Lam Purchasing

Jeff Binnie Purchasing

Leslie Lashbrook Purchasing

Bryan Freshment Supply Chain

Supervisor

Why is a strong relationship and good communication between procurement and suppliers so important? Better communication = stronger relationship Problems are more easily resolved = increased efficiency Being able to adapt to sudden changes in deadlines = more flexibility

Supply Chain - Communication

Supply Chain – Schedules and Budgets What is needed out of our supply chain with regards to

staying on schedule and within budget? On time delivery Competitive pricing Establish and maintain a “key supplier” base

Supply Chain – Future Opportunities

What is the potential for future business for suppliers who consistently perform? Higher volume of orders (PO’s) Negotiation of long-term agreements

Supply Chain – Long Term Agreements

What are the benefits of putting long-term agreements in place for repetitive parts?

Ongoing repetitive programs = potential for earlier placement of PO’s and higher part volumes

Higher part volumes (larger runs) = consistent lower costs Benefits both United Rotorcraft and Suppliers in time and cost

7301 S. Peoria St. | Englewood, Colorado 80112 | (303) 792-7400 www.unitedrotorcraft.com

Q & A